So if I decide to stay with catalogs, then I guess I should go ahead and delete the session data?
I am sort of on the fence about all the idea of trusting the newly developed cataloging features of C1 will all the processing/edit decisions instead of having the sidecar files.
I disagree with Doug. DON'T delete your data. At least, not yet. I had the application crash and lost all my work. Keep your data until v7 (catalogs) becomes more stable.
Also, currently, you would have to export each file, one by one, if you want your adjustments saved outside the catalog (in order to be safe from a crash problem during a working day, that's the only way to do it; Phase doesn't deem writing to an XMP file the adjustment worthy of their time; even though it's done when using sessions).
In my opinion, catalogs are not ready for prime time. It seems that there are some that are lucky and didn't experience any crashes, but I don't rely on luck when it comes to my work/time.